Government crackdown on online gambling - credit card use no longer allowed?
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Breaking news has revealed that the federal government plans to ban the use of credit cards when gambling online.
Communications Minister Michelle Rowland and Social Services Minister Amanda Rishworth revealed the proposal to ban the use of credit cards while gambling online to ensure Aussie punters aren't placing bets on something they can't afford.
'It's as simple as this: people should not be betting with money they do not have,' Ms Rowland said.
‘Legislating a ban on the use of credit cards for online gambling will help protect vulnerable Australians and their loved ones.’
This ban will be for all Australian licensed wagering services.
For some, the ban can't come soon enough. As we all know, it's so easy to get in over your head if you're using a credit card and borrowing from the future to fund your gambling here and now.
The ban will bring online gambling regulations in line with what existing betting services in pubs, clubs, casinos, and other venues abide by. Not only that, but it'll also apply to online mobile or desktop gaming apps – so there will be no more using your credit card.
Lottery services will be excluded from the ban.
The government recognises the problem with gambling in Australia, with recent data indicating that approximately 1.6 million Australians are suffering from problem gambling in some form, costing the country up to $24 billion in gambling losses each year.
The decision to bring online gambling in line with other services has been largely backed by the general public. A 2019 survey commissioned by the Australian Banking Association found 81% of people agreed credit cards should be restricted or banned in some way.
The ban will be enforced by identifying Bank Identification Numbers to block credit cards and is similar to the measures already taken in casinos and poker machine venues.
The Australian Banking Association (ABA) supports the government's plan and its Chief Executive, Anna Bligh, said it would help set the right standards across the industry.
‘The ABA has advocated for a number of years for consistency regarding the use of credit cards for gambling,’ she said.
‘This is a long overdue reform and it's a credit to the relevant ministers that they've taken such a decisive move so early in their term.’
‘Using credit cards for gambling can create a unique harm where large amounts of debt can be accumulated in a short period.’
Financial Counselling Australia also welcomes the plan but believes that there is a loophole with the exclusion of lotteries from the ban.
‘We should never have to discuss credit cards and gambling in the same sentence ever again,’ said FCA Director of Policy Lauren Levin.
‘If reforms leave a gap, that is where the money inevitably flows. With this in mind, we urge the Government to reconsider the proposed lotteries carve out in the new legislation.’
‘The principle is the same, “no one should be betting with money they don't have”, whether they are spending $200 on a lottery syndicate or with online gambling, whether they are spending in the local newsagent or on sports betting.’
The federal government is not the first country to implement a ban on credit cards in online gambling - other countries have already taken the same approach. In the United Kingdom, the Gambling Commission Limited implemented a ban in April 2020. This ban means customers in the UK can only use debit cards or e-wallets, and betting companies can no longer accept other forms of payment.
In Ireland, betting sites were barred from taking credit card payments for both new and existing customers. Russia also recently introduced a ban on credit card use for online gambling and betting.
These measures demonstrate that the move to introduce a credit card ban in Australia is an internationally accepted approach to protecting vulnerable Australians from problem gambling.
Members, what do you think of this news? Are you for or against this proposal? We would love to hear your thoughts in the comments section below.
Communications Minister Michelle Rowland and Social Services Minister Amanda Rishworth revealed the proposal to ban the use of credit cards while gambling online to ensure Aussie punters aren't placing bets on something they can't afford.
'It's as simple as this: people should not be betting with money they do not have,' Ms Rowland said.
‘Legislating a ban on the use of credit cards for online gambling will help protect vulnerable Australians and their loved ones.’
This ban will be for all Australian licensed wagering services.
For some, the ban can't come soon enough. As we all know, it's so easy to get in over your head if you're using a credit card and borrowing from the future to fund your gambling here and now.
The ban will bring online gambling regulations in line with what existing betting services in pubs, clubs, casinos, and other venues abide by. Not only that, but it'll also apply to online mobile or desktop gaming apps – so there will be no more using your credit card.
Lottery services will be excluded from the ban.
The government recognises the problem with gambling in Australia, with recent data indicating that approximately 1.6 million Australians are suffering from problem gambling in some form, costing the country up to $24 billion in gambling losses each year.
The decision to bring online gambling in line with other services has been largely backed by the general public. A 2019 survey commissioned by the Australian Banking Association found 81% of people agreed credit cards should be restricted or banned in some way.
The ban will be enforced by identifying Bank Identification Numbers to block credit cards and is similar to the measures already taken in casinos and poker machine venues.
The Australian Banking Association (ABA) supports the government's plan and its Chief Executive, Anna Bligh, said it would help set the right standards across the industry.
‘The ABA has advocated for a number of years for consistency regarding the use of credit cards for gambling,’ she said.
‘This is a long overdue reform and it's a credit to the relevant ministers that they've taken such a decisive move so early in their term.’
‘Using credit cards for gambling can create a unique harm where large amounts of debt can be accumulated in a short period.’
Financial Counselling Australia also welcomes the plan but believes that there is a loophole with the exclusion of lotteries from the ban.
‘We should never have to discuss credit cards and gambling in the same sentence ever again,’ said FCA Director of Policy Lauren Levin.
‘If reforms leave a gap, that is where the money inevitably flows. With this in mind, we urge the Government to reconsider the proposed lotteries carve out in the new legislation.’
‘The principle is the same, “no one should be betting with money they don't have”, whether they are spending $200 on a lottery syndicate or with online gambling, whether they are spending in the local newsagent or on sports betting.’
The federal government is not the first country to implement a ban on credit cards in online gambling - other countries have already taken the same approach. In the United Kingdom, the Gambling Commission Limited implemented a ban in April 2020. This ban means customers in the UK can only use debit cards or e-wallets, and betting companies can no longer accept other forms of payment.
In Ireland, betting sites were barred from taking credit card payments for both new and existing customers. Russia also recently introduced a ban on credit card use for online gambling and betting.
These measures demonstrate that the move to introduce a credit card ban in Australia is an internationally accepted approach to protecting vulnerable Australians from problem gambling.
Members, what do you think of this news? Are you for or against this proposal? We would love to hear your thoughts in the comments section below.
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